24 Jul 2013
EUR/AUD rebounding after Aussie and Chinese data but stuck in middle of range
FXstreet.com (Barcelona) - The EUR/AUD cross rebounded sharply following the release of weak HSBC Manufacturing PMI data. This came after the cross sold off initially following tame Aussie inflation data just a few minutes beforehand.
EUR/AUD being whipsawed by economic data
In what analysts are calling a move to clear out stop-losses, the EUR/AUD sold off sharply after initially spiking higher following a lower-than-expected Aussie CPI reading of 2.4% year over year.
However, once the Chinese PMI data were released just 15 minutes after the Australian data, EUR/AUD spiked higher once again – but fell short of taking out the post-Aussie CPI spike high at 1.4289.
As of 2:10 GMT, EUR/AUD sits right between the post-data extremes at 1.4251.
EUR/AUD technical levels
Technicians have been calling for a continued slide in the EUR/AUD at least down to Fibonacci-generated support at 1.4111. However, they note that a bounce up to 1.4344 was entirely possible prior to the test of 1.4111. Short-term support for EUR/AUD on the way down to the 1.4111 level comes in at the 7/17 intraday low at 1.41650. First resistance for EUR/AUD comes in at the post-data spike at 1.4289 and is followed by key resistance at the Monday peak of 1.4344.
EUR/AUD being whipsawed by economic data
In what analysts are calling a move to clear out stop-losses, the EUR/AUD sold off sharply after initially spiking higher following a lower-than-expected Aussie CPI reading of 2.4% year over year.
However, once the Chinese PMI data were released just 15 minutes after the Australian data, EUR/AUD spiked higher once again – but fell short of taking out the post-Aussie CPI spike high at 1.4289.
As of 2:10 GMT, EUR/AUD sits right between the post-data extremes at 1.4251.
EUR/AUD technical levels
Technicians have been calling for a continued slide in the EUR/AUD at least down to Fibonacci-generated support at 1.4111. However, they note that a bounce up to 1.4344 was entirely possible prior to the test of 1.4111. Short-term support for EUR/AUD on the way down to the 1.4111 level comes in at the 7/17 intraday low at 1.41650. First resistance for EUR/AUD comes in at the post-data spike at 1.4289 and is followed by key resistance at the Monday peak of 1.4344.